Standard&Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'A-' from 'A+' on Glendale, Ariz.'s general obligation (GO) bonds. The outlook is negative. The rating action reflects our view of the city's continued general fund deficits and estimated negative 19.5% general fund balance for fiscal 2012, driven primarily by large payments representing nearly 20% of city general fund expenditures in the past two years, for management fees related to the hockey arena. The ratings further reflect our view of the city's: Participation in the diverse Phoenix metropolitan statistical area (MSA) economic base; Moderate overall net debt burden, including all overlapping and direct tax-supported debt; and Willingness to generate additional revenue through the recent adoption of
